Coforge misses estimates, posts 138% YoY jump in Q1 profit; revenue surges 50%

Despite missing analyst estimates, mid-tier IT company Coforge outperformed its peers in the first quarter of fiscal year 2026, reporting a 138.4% year-on-year (YoY) rise in net profit to Rs 317.4 crore. Revenue surged over 54% both in rupee and dollar terms, to Rs 3,688.6 crore and $442.4 million, respectively.

Coforge missed Bloomberg consensus estimates, which had pegged its June quarter net profit at Rs 335 crore and revenue at Rs 3,723 crore.

This led the stock, which had briefly made gains earlier in the week, to slip over 9% on Thursday until noon after closing 0.7% lower on Wednesday, at Rs 1,849.10, on the BSE. Coforge’s shares have largely remained flat over the past month.


The Noida-and-US-headquartered company declared an interim dividend of Rs 4 per share, with July 31 set as the record date.

During the June quarter, net profit grew 21.5% sequentially, while revenue rose 8.2% in rupee terms and 9.6% in dollar terms.

Growth was led by the Americas business improving 13.7% quarter on quarter (QoQ) and 72.4% from a year ago. It was supported by the travel, transportation and hospitality vertical’s growth of 31.2% QoQ and 92.2% from a year ago, the company’s filings showed.

The banking business, however, saw a decline of 1.1% from the previous quarter even as it grew 32.2% from a year ago.

“We remain committed to turning in the ninth consecutive year of robust growth, despite the uncertain macros that are swelling around us,” said Sudhir Singh, chief executive of the company.

About a fourth of Coforge's first quarter revenue numbers were also contributed by inorganic growth from its 54% stake acquisition in Cigniti Technologies, purchased in the first quarter of FY25, for around Rs 2,240 crore. The profit in the year ago quarter was lower due to the acquisition cost.

Coforge has signed a large, 13-year deal worth $1.56 billion with US travel company Sabre, which will see revenue coming in during the second quarter.

In the April to June period, the company signed five large deals with a total order intake of $507 million coming from North America, the Middle East and Asia. It also saw an uptick in business from helping clients set up their global capability centres (GCCs).

The velocity and the median size of the large deals signed by Coforge have been increasing over the years, Singh said.

Contrary to top-tier hiring trends, Coforge’s global workforce increased by 1,164 to end at 34,187 as of June end. Except industry leader Tata Consultancy Services (TCS) and Infosys, which added 5,060 and 210 employees, respectively, between April and June, other IT majors reduced their headcount.

Without mentioning a number, the Coforge CEO said the company plans to continue hiring from campuses in the current year as well.

While attrition inched up to 11.3% in the quarter from 10.9% in Q4FY25, it remained lower than in previous quarters.

Margins improved to 17.5%, from 16.9% in the preceding quarter, but declined from 18% a year ago.